Tesla’s (TSLA) board is reportedly exploring a brand new CEO pay deal for Elon Musk, who won’t get again his $55 billion 2018 compensation bundle.
In accordance with a brand new Monetary Occasions report, Tesla’s board created a brand new “particular committee” to discover a brand new CEO pay bundle for Musk.
The report factors to the committee new inventory choices and “other ways” to compensate Musk if Tesla fails to reinstate his 2018 compensation bundle, which was rescinded by a choose who discovered that Musk negotiated the take care of a board below his management after which misrepresented it to shareholders.
Musk is Tesla’s largest shareholder and due to this fact, he stands to learn essentially the most when the corporate does effectively. Nonetheless, he doesn’t take a wage for his function as CEO.
Traditionally, He has obtained inventory compensation packages, with the one secured in 2018 being the controversial one presently below rivalry.
Since then, no new CEO compensation bundle has been authorized, and Tesla has not recommended one other one because it tried to attraction the choose’s choice on the 2018 bundle.
The corporate is presently attacking the choice on two fronts with an attraction to the Delaware Supreme Court docket and a brand new laws in Delaware to attempt to circumvent the choice altogether.
FT reporting that the board is engaged on a brand new compensation bundle with backpay may level to Tesla anticipating not with the ability to reinstate the unique compensation bundle.
Robyn Denholm and Kathleen Wilson-Thompson are the board members reportedly on the brand new committee.
Denholm took over from Musk as Tesla’s chair, and she or he has lately made headlines for promoting her Tesla inventory choices for greater than $530 million over the previous few years.
Electrek’s Take
It more and more seems like Tesla gained’t be capable of distance itself from Musk and separate its destiny from his.
Musk has masterfully satisfied Tesla shareholders that the destruction of its core enterprise, promoting electrical automobiles, doesn’t matter as a result of the corporate is on the verge of fixing self-driving – one thing he has claimed yearly for the final 6 years and has been unsuitable each time.
Now that they don’t care about EVs, there’s no level in blaming Musk for killing demand and delivering a single new car in 5 years, the Cybertruck, a industrial flop.
Due to this fact, the one factor that can make Tesla shareholders cease wanting Musk as CEO is that if they cease believing his self-driving and humanoid robotic claims.
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